The Federal Communications Commission this week floated the idea of giving Internet-based video services access to cable and broadcast channels.

The move could open up the possibility of a la carte programming, or only paying for the TV channels you want, not to mention a second chance for Aereo.

"Today the FCC takes the first step to open access to cable programs as well as local television," FCC Chairman Tom Wheeler said in a blog post. "The result should be to give consumers more alternatives from which to choose so they can buy the programs they want."

Wheeler has asked his fellow commissioners to open up a proceeding to modernize the term "multichannel video programming distributor" (MVPD). The FCC currently defines an MVPD as "an entity that makes available for purchase multiple channels of video programming" - so cable companies, satellite providers, and phone companies that offer video, like Verizon FiOS and AT&T U-verse.

Wheeler said an update makes sense given the rise of Internet-based services. "The definition of an MVPD should turn on the services that a provider offers, not on how those services reach viewers," he said. "Twenty-first century consumers shouldn't be shackled to rules that only recognize 20th century technology."

Satellite providers were not always considered MVPDs. In 1992, Congress mandated that satellite services should have access to video channels just like their cable counterparts, "and competition flourished," Wheeler said.

"I am proposing to extend the same concept to the providers of linear, Internet-based services; to encourage new video alternatives by opening up access to content previously locked on cable channels," Wheeler wrote.

An Internet-based MVPD could offer "many different kinds of multichannel video packages designed for different tastes and preferences, [and] a better ability for a consumer to order the channels he or she wants to watch," Wheeler continued.

Major cable and pay TV services have long resisted an "a la carte" approach. For about a decade, they have argued that a la carte would result in increased pricing and less channel diversity.

In a statement, the National Cable and Telecommunications Association (NCTA) - which includes major firms like Comcast, Time Warner Cable, Cablevision, and Charter among its membership - urged the FCC to move cautiously.

"Redefining what it means to be an MVPD raises profound questions about how government will extend regulation to Internet video services and how any would-be virtual MVPDs will meet their 'social compact' obligations," the NCTA said, referring to community-related commitments.

"With so many unknowns, the FCC should take great care in any such examination so as to avoid creating new problems that would result in unintended consequences and would fail to honor principles of competitive neutrality among rival providers," NCTA concluded.

One company that is excited to hear about the FCC's proposal? Aereo. The Internet-based company, which was forced to shut down earlier this year after the Supreme Court found it to be infringing on copyrights held by broadcasters, now wants to exist as a cable company and has enlisted the FCC's help.

It was dealt a setback recently when a New York judge granted a request from major broadcasters to ban Aereo from retransmitting live TV broadcasts. But if the FCC redefines what it means to be an MVPD, Aereo might have another shot.

In a Facebook post, Aereo CEO and founder Chet Kanojia said the FCC's decision is "an important step in the right direction for consumers."

"The way people consume television is rapidly changing and our laws and regulations have not kept pace," Kanojia said. "By clarifying these rules, the FCC is taking a real and meaningful step forward for competition in the video market. The FCC recognizes that when competition flourishes, consumers win."

Wheeler called out Aereo in his blog post; the company "recently visited the Commission" to argue for cable company status. But his proposal could also allow for other small, Internet-based companies to get ahead.

"Those seeking to deploy new competitive broadband networks tell us that it's hard to provide new high-speed Internet access without also being able to offer a competitive video package as well," he said. "An updated definition of MVPD would permit a new broadband competitor to offer customers the ability to reach a variety of [over-the-top] video packages without necessarily having to enter the video business itself."

About the Author

Before joining PCMag.com, Chloe covered financial IT for Incisive Media in NYC and technology policy for The National Journal's Technology Daily in Washington, DC. She has held internships at NBC's Meet the Press, washingtonpost.com, the Tate Gallery press office in London, Roll Call, and Congressional Quarterly. She graduated with a bachelor's deg... See Full Bio

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